Wall Street advances, crude gains as investors await stimulus progress

President Trump’s call to halt negotiations
October 7, 2020
S&P 500 set for second straight weekly gain on stimulus hopes
October 9, 2020

Wall Street advances, crude gains as investors await stimulus progress

NEW YORK (Reuters) – U.S. and world stocks advanced and crude prices gained ground on Thursday in anticipation of further progress in stimulus negotiations.

Reports that U.S. House Speaker Nancy Pelosi and the White House could hammer out a $25-billion rescue package for commercial airlines boosted that sector and fueled hopes that broader pandemic relief could be forthcoming, if only incrementally.

This sentiment was echoed by President Donald Trump, who urged Congress to pass money for airlines, small businesses, and relief checks for individuals after abruptly calling off negotiations.

“The global markets continue to follow each other almost on a daily basis,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“While we have moments of volatility as political rhetoric heats up ahead of the election, the market’s overall sentiment is positive,” Cardillo added. “The market has already priced in a change of guard at the White House.”

Democratic nominee Joe Biden has been advancing in the polls ahead of the Nov. 3 election, now less than a month away.

The U.S. Labor Department reported jobless claims, while edging lower last week, remain stubbornly high and well above the highest numbers at the nadir of the Great Recession.

“There’s no change in the (jobless claims) trend and nothing to suggest that the unemployment problem is going to dissipate any time soon,” Cardillo said.

The Dow Jones Industrial Average rose 100.78 points, or 0.36%, to 28,404.24, the S&P 500 gained 21.45 points, or 0.63%, to 3,440.9 and the Nasdaq Composite added 58.15 points, or 0.51%, to 11,422.75.

European stocks joined the world rally in anticipation of movement in coronavirus aid negotiations.

The pan-European STOXX 600 index rose 0.99% and MSCI’s gauge of stocks across the globe gained 0.71%.

Emerging market stocks rose 0.78%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.78% higher, while Japan’s Nikkei rose 0.96%.

Treasury prices firmed and the yield curve flatted a bit amid persistent pandemic relief uncertainties and weaker-than-expected economic data.

Benchmark 10-year notes last rose 5/32 in price to yield 0.7685%, from 0.785% late on Wednesday.

The 30-year bond last rose 17/32 in price to yield 1.5656%, from 1.589% late on Wednesday.

Crude prices topped $43 per barrel as output shutdowns related hurricanes in the Gulf of Mexico and an ongoing oil worker strike in Norway pressured supply.

U.S. crude rose 2.08% to $40.78 per barrel and Brent was last at $42.84 per barrel, up 2.02% on the day.

The dollar edged higher against a basket of world currencies as investors awaited further news on stimulus talks.

The dollar index rose 0.05%, with the euro down 0.07% to $1.1752.

The Japanese yen weakened 0.04% versus the greenback at 106.03 per dollar, while Sterling was last trading at $1.2929, up 0.09% on the day.

Market optimism also lifted gold.

Spot gold added 0.1% to $1,888.96 an ounce.

Reporting by Stephen Culp; additional reporting by Marc Jones; Editing by Nick Zieminski

Source: https://www.reuters.com/article/idUSKBN26T07W